EJ makes $875,000 a year from MLS

Discussion in 'Yanks Abroad' started by Ronaldo's Idol, Jul 6, 2005.

  1. Ronaldo's Idol

    Jun 13, 2004

    originally posted by monster in DC United's board.

    VERY interesting info on EJ's new deal. MLS seems to be truly trying to hold on to him, at least to the degree that it looks like EJ is not going to be simply available to any suitor who swoops in with a $5 mil offer like Benfica.

    $875,000 is arguably as much as he'd make if he went to PSV (Gibbs makes what, $750,000 at Feyenoord?). I guess EJ could get over a million if he went to ManU, but MLS is certainly paying up for him big time (he makes almost twelve times as much as Noonan, the leading scorer in MLS!). Perhaps the theoretical limit would be a $2 million salary for EJ right now in Europe, but that would probably set some kind of US record (how much does McBride make, and how much did Donovan make at Bayer?)

    I think it is an interesting trend that MLS will go sky high on the salary for some players, yet keep others of slightly lower talent at extremely low salaries. Makes sense if they can pull it off, it's a good way to hold onto hot players and show Euro teams that they can't just swoop in and take the best talent without paying a fair price.
  2. Mason16

    Mason16 Member

    Apr 11, 2001
    South Florida
    DC United
    Nat'l Team:
    United States
    Wow. Nice to see MLS learn a lesson and step up the pay. They stand to profit nicely when EJ is sold. Who is the lowest paid USMNT regular? Noonan at $75,000?
  3. CyphaPSU

    CyphaPSU Member+

    Mar 16, 2003
    Not Far
    Philadelphia Union
    Nat'l Team:
    United States
    Woah. So who leaked out that info from MLS brass?

    EJ, what a promotion! Who goes from $86,250 to $875,000 within one year!

    Which begs the question, are these clubs still strickly following the salary cap? For example, how can FC Dallas absorb Eddie's salary and Ruiz's salary both this season under the current salary cap restrictions?
  4. scaryice

    scaryice Member

    Jan 25, 2001
    The "max" salary only applies to the cap, I believe. So they would only count 300k.
  5. fidlerre

    fidlerre Moderator
    Staff Member

    Oct 10, 2000
    Central Ohio
    That $875,000 includes endorsement deals that don't count against the cap.
  6. P1brit

    P1brit Member

    Mar 31, 2005
    Novi, MI
    Swindon Town FC
    Nat'l Team:
    Don't question the math. Thats what the mutiny, fusion and jimmy hoffa did
  7. CyphaPSU

    CyphaPSU Member+

    Mar 16, 2003
    Not Far
    Philadelphia Union
    Nat'l Team:
    United States
    Who has a good explanation of the current cap rules? Because google is not coming up with any real helpful hits on the subject.
  8. The Greatest

    The Greatest New Member

    Jan 19, 2005
    It's not that complicated. No matter how far above it is, it only counts $270,000 against a team's cap (some say 300,000 is the max, but it really doesn't matter). Built in endorsement deals and bonuses don't count against the cap.

    On top of all that, the league seems to be getting more lax in regards to the cap, so it may not even matter anyway.
  9. jri

    jri Red Card

    Sep 28, 2000
    Sounds like Reaganomics to me. I love EJ, but no US soccer player in worth 875k in salary, except maybe Freddy in 2004 and Mia Hamm 1999-2002.

    Of course, if endorsements are 1/2 of that or more, than it becomes much more 'reasonable'
  10. SgtSchultz

    SgtSchultz Member

    Jul 11, 2001
    Parts Unknown
    The league is paying Eddie this sum for one purpose. MLS knows he may fetch a pretty penny on the transfer market.
  11. FirstStar

    FirstStar Hustlin' for the USA

    Feb 1, 2005
    Time's Arrow
    Nat'l Team:
    United States
    The league may yet decide that it's survival and growth depends on keeping some of its stars in the US. Right now, most hard-core fans care more about their team than players, but it's easier to attract new fans with marquee names.
  12. sidefootsitter

    sidefootsitter Member+

    Oct 14, 2004
    I assume this is a 3-4 year deal/extension. Not bad for a 21-year old.

    And Texas has no income tax.

    Now the league can pick and choose its suitors, arguably waiting it out until after the World Cup.
  13. Jerlon

    Jerlon Member

    Aug 29, 2001
    Western NY
    EJ plays half (approx) of his games in other states as do all professional players. They all have to pay income tax in the state they earn the money. So regardless, he is paying income tax for all away games. Unless this has changed recently of course.
  14. jmeissen0

    jmeissen0 New Member

    Mar 31, 2001
    page 1078

    no one from mls leaked it

    the union passed out the information to the players

    they deserve to know what the other guy is being paid so that they have an understanding of what they should be paid

    it's one of the reasons why the mls players union is a great thing
  15. Rommul

    Rommul Member

    Aug 26, 2003
    So its official now.

    Guppy is the biggest bust of the season.

    Sixth highest paid player on DC?


    So much for the "It doesn't matter if he doesn't have an impact because he is not getting paid much." spiel.

    I can prcatically feel the negative rep from hyper sensitive DC fans.

    As far as this pertains to EJ I feell greta for the kid. Love to see our players make big money especially to play at home.

    BTW what are these endorsements that don't count against the cap that you all speak of?

    PS Jri can you stop with the "No american soccer player is worth that"? It is really tiresome. If the owner thinks he is worth that because he will bring them more success on and off the field then he is worth it.

    Gotta run.

    I have old threads to dig up :)
  16. appoo

    appoo Member+

    Jul 30, 2001

    are you sure about this? I take a business trip to DC, but I still have to pay Pennsylvania. Your income tax is based upon your place of residence.
  17. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Of course it is. I don't know what that fool was on.

    At any rate, part of what makes EJ worth $875k is possible transfer fees. Part of it is that this season is a crucial for FCD as a franchise. The new stadium basically assures survival, but there's a difference between survival and thriving. If EJ helps FCD truly contend (arguably for the first time) or win (definitely for the first time) an MLS Cup, $875k is a bargain.
  18. FC Tallavana

    FC Tallavana Member+

    Jul 1, 2004
    La Quinta
    Clyde Simms is as much of a "regular" as Noonan and he only makes 31K.
  19. Mason16

    Mason16 Member

    Apr 11, 2001
    South Florida
    DC United
    Nat'l Team:
    United States

    Most DCU fans would probably agree with you on this.

    There have to be two very good reasons (at least) for this:
    1.) If MLS already turned down a $5mm bid from Benefica, then with a good showing at the WC, he could be worth double that. His performances with the MNT have come against Concacaf minnows (joke) and a solid WC outing against a Euro Team would clearly up his value.
    2.) Dallas is opening "The Hut" :rolleyes: this year and want to keep their marquee player at least until the end of the season.

    I seriously doubt MLS has to pay $875k for very long (12 more months max).
  20. Wahoo

    Wahoo New Member

    Aug 15, 2001
    Seattle, USA
    This is off topic... but income tax is not solely based on your place of residence.
    If I worked in Canada but lived in New York... I still pay Canadian taxes.
    There are also places where you pay locality taxes based on your work location rather than your home location (the state of Ohio for example).
  21. mattjo

    mattjo Member+

    Feb 3, 2001
    DC United
    Nat'l Team:
    United States
    Okay, but that has to do with federal income tax. There are several tests and it varies from state to state on what determines residency. (for example Virginia is very strict and claims all income for people who reside there for 6 months, this has to do with the large DC population that is there for 1 year or less. By contrast, California's rules are more liberal). However, to state that all professional atheletes have to pay income taxes in every state they play in is not true. If they are part of an organization (i.e. team sports) that is typically incorporated and receives a salary from them, they typically receive their salaary from a corporate or partnership headquarters. Now in the case of muscisians touring or individual athletes (golf/tennis), then it could possibly be that they will pay taxes in the state they worked in (i.e. where was the tournament and the tournament int hat state provides the income directly to the athlete). Interesting enough, the same holds true for foreign athletes visa requirements. If they are team athletes they need one type of visa. If they are touring atheltes or musicians, they need a different type of visa.
  22. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    DC United
    Nat'l Team:
    United States
    Yes. He's right. That's the way it is in all pro sports. For whatever reason, your business trip isn't considered the same thing.
  23. sidefootsitter

    sidefootsitter Member+

    Oct 14, 2004
    This entails some risks as well. Eddie could go dry against a higher quality competition and not be considered the next hot thing after all. MLS will still want $5-7M or more whereas the Europeans may be only interested in a two-tiered deal. Any impasse in negotiations would mean a pretty stiff charge for MLS, especially if Dallas's attendance does not pick up.

    Then again, as calculated risks go, this deal makes sense for both parties as its downside is pretty low. With Eddie being able to sign a deal on a free a year from now, MLS was up against the wall. This development buys them a lot of time.

    PS. As to taxes, I assume a tax paid in/to one state can be used to offset the tax liability in another for those who travel. But Texas has no income tax whatsoever, so I am not sure how it works. There may be tax amnesties in the works or the "retaliation" deals against states that levi taxes.
  24. the Next Level

    Mar 18, 2003
    Chicago, IL
    Doesn't seem to me that MLS is interested in selling him at all. I don't buy this "keep him till he transfers" idea.

    Though many of us on BS have pencilled MLS in as a feeder league, it would seem that the owners have a different idea. Thank goodness for the owners.
  25. OnTheEdge

    OnTheEdge New Member

    Apr 4, 2001
    Potomac, MD
    Since Texas doesn't have a state income tax, EJ can't offset state income taxes paid to other states. Most states have some sort of tax laws with regards to people (athletes, entertainers, etc...) who perform in their states.

    Not surprisingly, enforcement of these laws varies widely from state to state. California has a small staff dedicated to tracking out of state athletes playing in California. They will read box scores and stuff to make sure they can get every dollar they can. California probably does something similar for entertainers performing at concerts and stuff.

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